The mutual fund industry witnessed its fastest month-on-month percentage growth this fiscal with nearly 12 per cent rise in assets under management (AUM) to Rs 8.34 lakh crore in October due to sound inflows into liquid schemes, a Crisil report said.
"The rise in mutual funds AUM was primarily due to total net inflows of Rs 66,300 crore with liquid or money market funds contributing the maximum to the net inflows," the report said.
Interestingly, assets under equity schemes increased sharply by 7 per cent to Rs 1.73 lakh crore on the back of mark to market (MTM) gains despite outflows.
As per the Association of Mutual Fund in India (AMFI) data, AUM of liquid funds rose by 55 per cent to Rs 1.89 lakh crore due to inflows of Rs 67,500 crore, which is the highest in past six months on the back of cyclical inflows and RBI's liquidity easing measures.
In relation to equity mutual funds, the report said despite outflows of over Rs 3,500 crore in October, which is the highest for equity funds in the past 13 months, assets under this category rose seven per cent to Rs 1.73 lakh crore.
Meanwhile, assets under income and gilt funds also witnessed rise on MTM gains.
"While the income funds category saw inflows of Rs 3,100 crore in October, resulting in 2.2 per cent rise in its AUM to Rs 4.34 lakh crore; gilt funds posted 1.5 per cent gain in its assets to Rs 7,500 crore," the report said.
In the gold ETF category, assets declined by five per cent to fall below Rs 10,000 crore due to MTM losses.
Fixed maturity plans continued to get inflows due to rise in bond yields in the past couple of months.